Hudson v. Commissioner
United States Board of Tax Appeals
In 1906, prior to the discovery of any oil thereon, petitioner and his wife acquired by purchase the fee simple title to certain lands. The land had no mineral value at the date of purchase or on March 1, 1913. In 1919 petitioner and his wife granted a mineral lease on such property retaining a one-eighth royalty interest. In 1921 oil was discovered and thereafter petitioner and his wife sold a portion of their retained royalty interest.
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In 1906, prior to the discovery of any oil thereon, petitioner and his wife acquired by purchase the fee simple title to certain lands. The land had no mineral value at the date of purchase or on March 1, 1913. In 1919 petitioner and his wife granted a mineral lease on such property retaining a one-eighth royalty interest. In 1921 oil was discovered and thereafter petitioner and his wife sold a portion of their retained royalty interest. Held, the entire amount received from the sale of such portion was income under section 202 of the Revenue Act of 1921. Appeal of Anna Taylor,3 B.T.A. 1201.
1Opinion of the Court
*984OPINION.
GmoEN:
The petitioner did not appear and was not represented at the hearing. The above facts have been found from allegations of the petition which were admitted in the answer and from a stipulation of facts entered into by the parties.
*985The petitioner is contending that in computing the profit or loss resulting from the sale of a portion of his and his wife’s royalty interests, they should be permitted to apply against the selling price such amounts as the respondent would have allowed them as deductions under section 214 (a) (10) of the 1921 Act for depletion based on a discovery value…
2Cited by1 opinion
- Hudson v. CommissionerUnited States Board of Tax Appeals · 1929